The unadjusted trial balance as of December 31, 2013, for the Bagley Consulting Company appears below.

December 31 is the company’s fiscal year-end.

Required:
1. Enter the account balances in T-accounts.
2. From the trial balance and information given, prepare adjusting entries and post to the accounts.
a. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method.
b. The equipment is depreciated at 10 percent of original cost per year.
c. Prepaid insurance expired during the year, $1,500.
d. Accrued salaries at year-end, $1,500.
e. Unearned rent revenue at year-end should be $1,200.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trialbalance.

Transcribed Image Text:

Account Title Debits Credits Cash Accounts receivable Prepaid insurance Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts pavable Salaries payable Unearned rent revenue Common stock Retained earnings Sales revenue Interest revenue Rent revenue Salaries expense Depreciation expense nsurance expense Utility expense Maintenance expense 8,000 9,000 3,000 200,000 50,000 20,000 100,000 40,000 35,050 200,000 56,450 90,000 3,000 7,500 37,000 30,000 15,000 452,000 Totals 452,000